What is a lease?

A lease is fundamentally defined as a legally binding contract that permits one party to utilize another's property in exchange for payment, typically in the form of rent. This agreement delineates the rights and responsibilities of both the landlord (lessor) and the tenant (lessee), establishing terms such as the duration of the lease, the amount of rent, and the obligations for property maintenance.

Understanding that a lease is a formal contract reinforces the legal framework governing tenancy, ensuring that both parties are protected under the law. It represents a significant aspect of real estate transactions, particularly in rental markets, where the relationship between landlords and tenants relies on this structured agreement.

The other options refer to different types of agreements or documents in real estate. An agreement for a real estate agent to represent a seller pertains to agency relationships, a document for transferring property ownership refers to deeds, and an informal arrangement for property use lacks the legal enforceability that a lease possesses. Thus, these alternatives do not accurately describe what a lease entails.